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Jakarta Bay developers want official go-ahead for project

| Source: JP

Jakarta Bay developers want official go-ahead for project

JAKARTA (JP): Some developers joining the ongoing reclamation
project, which covers 2,700 hectares in Jakarta Bay, asked
yesterday for legal assurance that the project will continue.

A representative of PT Manggala Krida Yudha (MKY) said his
company had been encountering an overlap in the project's
supervision since it joined the venture.

"Before the issuance of Presidential Decree No. 52/1995, which
states the supervision and control of the reclamation project is
in the hands of the city administration, an overlap emerged among
some of the ministries involved in this project," an executive of
MKY, who asked for anonymity, told The Jakarta Post.

"But our intention is to make things work among all parties
involved. That is why we signed an agreement with both sides --
the state-owned port management company, PT Pelindo II, as a
representative of the Ministry of Transportation, and BP Pantura
(Jakarta Bay Supervision Board) for the municipality," he said.

The city councilors have urged the Ministry of Transportation
to hand over the control and supervision of the project to the
city administration to speed up construction.

Based on the presidential decree, the municipality has the
legal support of a "superior law" to run the project, the
councilors said.

However, some developers have signed agreements with the
Ministry of Transportation, which oversees waters near the
Tanjung Priok Port, through Pelindo II.

"We made a deal with Pelindo II before the presidential decree
was issued," the executive said.

"Why? Because according to the existing rules jointly signed
by three ministries in 1972, the sea on which our project (Ancol
Baru) is developed, is part of the Ministry of Transportation's
authority."

MKY has been allowed to reclaim 500 hectares under the project
and will manage 375 hectares while its partner, Pelindo II, has
control of the remaining 125 hectares.

"(The councilors) cannot just order us to cancel the agreement
with Pelindo II," he said. "Is everything canceled just because
there is a higher law, without caring about what was done
earlier?

"We (the developers) need legal assurance because this problem
will affect the reclamation project in the future," he said.

MKY also signed a development agreement with BP Pantura last
month regarding its obligation to build social and public
facilities within its 375-hectare plot.

The MKY executive said BP Pantura was a new institution --
established in 1995 -- so it was having some difficulty adjusting
to the other related parties that have been involved in the
project for longer.

"In fact, it is hard even to meet officials of BP Pantura, who
are mostly new and not as professional as, for instance,
officials of Pelindo II, who have experience in managing the
Jakarta Bay area.

"The board is practically left with nothing to do. Land use,
for example, is managed by the National Land Agency (BPN), while
the sea is managed by the Ministry of Transportation.

"So there should be clearer authority and consolidation," he
said. "Don't just sacrifice the existing agreements because the
municipality wants to increase its authority."

An executive of another developer, which reclaims a western
part of the bay, said yesterday that his company was also
encountering difficulties because of the overlapping.

"We're confused. Actually, who is in charge of what? We are
just businessmen who are trying to complete our project. I hope
(the ministry and the municipality) will settle this matter soon,
so we can continue the project," he said.

He said the bay's reclamation was not a cheap project and
urged parties and institutions involved not to be arrogant.

"It needs good coordination among the parties to make the
project work," he said.

The developers are reportedly waiting for a final decision
from the government to settle the dispute. (07)

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